Nazara’s Nodwin Gaming to take 100% ownership of Germany-based Freaks 4U Gaming for Rs 271 cr

Nodwin Gaming had earlier picked up 13.51 percent stake in Freaks 4U Gaming in January through an investment of €8 million

Nodwin Gaming, the esports subsidiary of Nazara Technologies, on June 28 said it has signed definitive agreements to buy 86.49 percent stake in Germany-based esports firm Freaks 4U Gaming through a share swap in a deal valued at Rs 271 crore (€30.3 million), taking its total ownership to 100 percent.

The acquisition is expected to bolster Nodwin Gaming's capabilities in PC gaming and games publishing support services along with access to developed markets. This is expected to substantially contribute to the company's future revenues.

At 11:23 am, the stock price of Nazara Technologies was trading 2.51 percent higher at Rs 833.7 on NSE.

Nodwin Gaming had earlier picked up 13.51 percent stake in Freaks 4U Gaming in January through an investment of €8 million (about Rs 75 crore). At the time, Nodwin Gaming had also obtained a right to acquire majority control of Freaks 4U Gaming.

As per the deal, Nodwin Gaming's Singapore subsidiary will initially increase its existing stake in Freaks 4U Gaming to 57 percent and buy the remaining 43 percent stake owned by Freaks 4U Gaming founders Michael Haenisch, Matthias Remmert and Jens Enders at a later date.

Existing investors of Freaks 4U Gaming will become shareholders of Nodwin's Singapore subsidiary Nodwin Gaming International Pte. Ltd. Freaks 4U Gaming had earlier raised €15 million from Co-Investor Partners, a private equity investor focused on high-growth, small and mid-sized companies in German-speaking countries, in August 2021.

"This acquisition is a pivotal step in our global growth strategy. By integrating Freaks 4U Gaming’s expertise and resources, we are poised to deliver unparalleled services and expand our global footprint in the gaming and esports industries" said Nodwin Gaming co-founder Akshat Rathee in a statement.

Founded in 2011, Freaks 4U Gaming is a global full-service agency that specialises in esports and gaming. Headquartered in Berlin, Germany, the firm offers a range of solutions including strategic brand and marketing consultancy, social media and community management, editorial services, event management and logistics, and creative services.

It also delivers broadcast productions as one of the most prominent esports content creators worldwide apart from providing other community-oriented solutions. The firm has regional offices across Europe, Asia, and North America and employs over 190 people. Freaks 4U Gaming had reported revenues of Rs 223 crore (€26.9 million) in 2023.

Since the investment in January, Nodwin Gaming said it has worked with Freaks 4U Gaming on jointly delivering high-profile projects such as the PUBG Mobile Global Open and Esports World Cup (EWC) and have jointly explored new business vertical opportunities.

Nodwin Gaming has also been working with Freaks 4U Gaming management on integration of the two businesses and evaluating the synergies they present, it said.

Nodwin Gaming's global expansion

Founded by Rathee and Gautam Singh Virk, Nodwin Gaming owns various IPs including prominent tournaments, festivals, and conferences in esports, gaming, music, comedy and live experiences that could appeal to gaming enthusiasts. It operates across multiple offices in South Asia, Singapore, the Middle East and Turkey.

In May 2023, Nodwin Gaming raised $28 million from new investors Sony Group Corporation and Innopark and existing investors such as Nazara, Krafton and JetSynthesys. The round valued the firm at $349 million, a significant jump from its earlier valuation of $135 million when it last raised funds in March 2021.

Over the past year or so, the startup has sought to expand its offerings in India and international markets through a series of acquisitions and investments.

In January, it purchased Comic Con India, which hosts pop culture festivals in India, for Rs 55 crore to bolster its events portfolio.

The company also acquired Ninja Global FZCO to expand its presence in UAE, Turkey in February.

In October 2023, Nodwin Gaming's Singapore unit acquired a 100 percent stake in game marketing agency Publishme for $2 million from parent firm Nazara Technologies and Publishme co-founder Ozgur Ozalp to boost its existing offerings for brands and publishers.

Other acquisitions and investments include a 51 percent stake purchase in Singapore-based live events firm Branded in an all-cash deal of up to $1.3 million in April 2023; buying the gaming and adjacent IP businesses of OML Entertainment for Rs 73 crore in September 2021, including the popular NH7 Weekender music festival; and picking up a 10.26 percent stake in digital media firm Rusk Media for Rs 10 crore in December 2021.

Nodwin Gaming also purchased comics, pop culture and superheroes merchandising retailer Planet Superheroes for Rs 4.9 crore in January 2022.

The company reported Rs 427.1 crore revenue in the financial year 2023, up 10 percent from Rs 388.7 crore in FY22.